Chicago – July 18, 2025
U.S. insurance companies are asking for the biggest price increases for Obamacare plans since 2018, according to health research firm KFF. These price hikes are mainly due to the expected end of premium tax credits and possible new tariffs on medical goods.
Insurance companies are planning to raise premiums by a median of 15% for 2026, based on filings from 105 insurers in 19 states. In recent years, premiums have either stayed the same or only increased slightly.
The industry has been facing challenges like changes in the number of people signing up for insurance and rising medical costs. Major insurers such as UnitedHealth and Centene have either stopped giving annual earnings predictions or lowered their profit goals.
Insurance companies explained that fewer people are signing up for health plans, and more people with serious health conditions are enrolling. These plans mostly help people who don’t get insurance through their jobs, Medicaid, or Medicare.
Another reason for the premium increase is the end of COVID-era premium tax credits in 2026. Without these credits, KFF says, premiums could go up by an extra 4%. Healthcare costs are still increasing by about 8% compared to last year, and new drugs for weight loss and diabetes, as well as labor market pressures, are adding to the cost. Insurers are also uncertain about new rules meant to reduce fraud and improve enrollment in Obamacare plans.
